The Rules of the GEPF (contained in the Government Employees Pension Law) provide that if the Option 1: Retire with the GEPF. Established in 1996, it is the largest pension fund in South Africa and one of the largest pension funds in Africa and the world. According to the Fund rules, the annual pension increase paid to GEPF pensioners must be at least 75% of the average increase in consumer inflation during 1 December - 30 November of the previous year. Retirement Calculator. At retirement, the Government Employees Pension Fund (GEPF) pays out a lump sum and a monthly annuity. The reason for this is that GEPF funds can perhaps be used in future to rescue financially-struggling state departments and semi-state departments. This retirement calculator is for illustrative purposes only, and a decision to change your financial portfolio should not be based solely on the result of the calculation done here. GEPF Divorce Benefits - A clear explanation on the GEPF and Divorce: The "clean-break" divorce principle was added to the Pension Fund Act 24 of 1956 on 13 September 2007. This tool will help you calculate and compare your monthly income tax based on the latest available tax figures and the previous year's tax figures, taking into account the most common income sources and deductions. sum is classified as a “provident fund” in the Second Schedule to the Income Tax Act. Tax implications on GEPF Divorce Claims Divorce Orders date after the 1st of March 2012: No tax will be payable on any amount that becomes payable on or after 1 March 2012 in terms of a divorce order that was issued before “In terms of Section 7(7) and 7(8)(a)(i) and (ii) of the Divorce Act 70 of 1979 it is agreed that 50% of the pension interest, due and assigned to the (member), held in the Government Employees Pension Fund be paid to the (claimant) by the aforementioned fund when any such pension benefits accrue in respect of the (member), up to the date of the granting of the Decree of Divorce. C. Government Employees Pension Fund (GEPF) The GEPF is included under paragraph (b) of the definition of “pension fund” in section 1 of the Income Tax Act. Calculate if you are saving enough to achieve your future retirement goals. If the child does not have a tax number, the GEPF will register the child as a tax payer with SARS and inform the child and guardian of the tax number. Please fill out the shaded fields below to get your results. In the U.S., the main advantage of a pension as a vehicle of saving for retirement lies in the fact that pensions provide preferential tax benefits for money placed into them as well as any subsequent earnings on investment. The tax-free portion applies if you take a cash lump sum directly from the GEPF or if you transferred directly from the GEPF to Allan Gray on or after 1 March 2006. The benefit calculator should be used for GEPF benefit calculations. Lump sum benefit due from fund: R. Tax free amounts received in the past: R. If you are over 55 the investment term is assumed to be 20 years. We therefore cannot be held responsible for any direct or indirect loss or damages that you may suffer should you rely on them. As a member of the GEPF, you cannot borrow money from your pension fund. When Did You Start Working At The Department. Due to the size of the GEPF, members benefit from economies of scale as far as costs are concerned. Tax relief on retirement lump sum benefits is allocated once in a lifetime in other words if it’s used up you can’t claim it again. Please contact Sars or a registered tax practitioner for any tax-related queries. Once you’ve seen your initial results, you can edit all the fields to determine what adjustments you may need to make if there’s a shortfall. The first R500 000 will be tax free. Investing in your 20s. Gratuity Tax Calculator: Have you received a gratuity payment from your company and want to know the tax liability on it. GEPF: calculation of tax free protion. The investment term and savings period is assumed to be from your current age to age 65, unless you are over 55. The calculator assumes the you save 10% of the salary you input and that this grows annually in line with inflation. The complication is that pre 31 March 1998 the portion is tax free, then after that the system changed. This means that a non member spouse can claim their share of the benefit from the Pension Fund before the member resigns, retires or dies. Please visit our Annuity Calculator or Annuity Payout Calculator for more information or to do calculations involving annuities. 2. Tax on retirement benefits: Pre- and Post-1998 Before 1998 GEPF members were not taxed on their retirement benefits taken as a lump sum. Input. A: No. This table is applied to the aggregate of your retirement fund withdrawals. Therefore, the tax-free benefit is R6 828 552 - R3593 975 = R3 234 577. Nobody seems to be able to calculate … ... Tax and medical benefits. But if the child receives a benefit less than the tax threshold, there will be no tax deducted. Detailed information regarding resignation benefits is available under the ‘Our benefits’ section of the GEPF website at www.gepf.gov.za. Some retirement plans provide that pension is determined on the "final highest year" salary -- for example, the highest-paying consecutive 52-week period in a person's employment history under the plan. * If you joined the GEPF before 1 March 1998, a portion of any cash withdrawal you make may be tax-exempt as the benefits of the GEPF were tax free before that date. The withdrawal lump sum tax table is as follows: the first R25,000 is not taxed, the balance to R660,000 is taxed at 18%, the balance to R990,000 at 27% and the remainder at 36%. You, as a member, have the following options on withdrawal from the GEPF: (i) Cash resignation from the fund, or (ii) Transfer to an approved retirement fund. tax tables. For example, if a person used R300 000 of the R500 000 with the first lump sum, the balance left is R200 000 and once this is used up this relief is not available again.